Jan. 25 (Bloomberg) -- Germany passed legislation making it easier for farmers to sow genetically altered corn, angering green lobbies and consumer groups while earning a rebuke from Monsanto Co., the world's largest seed producer, for not going far enough.

Chancellor Angela Merkel's coalition steered legislation through parliament in Berlin today outlining new rules on sowing a pest-resistant corn seed known as MON180, whose patent is held by Monsanto. Lawmakers also framed a voluntary code on labeling food that's free of genetically altered substances.

The legislation follows a decision in 2006 to overturn an eight-year freeze on the sale of MON180 seeds decided by the previous Social Democrat-Green Party coalition government. Agriculture Minister Horst Seehofer said his decision to give the go-ahead for MON180 was aimed at helping Germany's biotechnology industry. Monsanto said the new legislation fails to remove hurdles for farmers who want to plant the crop.

``Merkel's coalition pledged to ease barriers to `green' genetic technology; the new rules are very disappointing,'' Andreas Thierfelder, Monsanto's director of public affairs in Germany, said today in an interview. ``They're restrictive and may deter expansion of the crop in Germany.''

MON180 maize, which is used in animal feed, is currently the only genetically modified crop approved for commercial planting in the European Union. While it was technically legal in Germany before 2006, the government did not license the seed for sale. France has banned the seed.

Green Critics

Consumer and environment groups including the BUND organization welcomed the plan to label GM-free products, while urging Seehofer to follow France's example in banning MON180. The Green Party, now in opposition, also asked Seehofer to ban MON180, citing a study purporting to show that the seed is poisonous to a wide range of organisms.

``The GM corn's been so manipulated that it exudes a pesticide,'' Greenpeace genetic technology expert Stephanie Toewe said in an interview on ARD television today. The new legislation is ``fatal and fully absurd,'' she said.

Merkel's government puts safety and consumer concerns above potential economic gains, Seehofer told reporters in Berlin yesterday. Still, the measure will encourage research, and Germany wants to ``catch up'' with competitors to secure sales growth in oil-bearing plants and avoid a ``fatal'' dependency on foreign patents, he said.

`Safety Zone'

The new legislation obliges farmers who want to sow MON180 to set a 150 meter ``safety zone'' between the plots and neighbors who've sown regular GM-free corn. Farmers need to draw up a zone of 300 meters around plots adjacent to organic crops. Farmers will also be obliged to report in an Internet register plans to sow the seeds three months before the April-May planting season.

The zones are ``way, way overplaying the safety card'' and will force many small-holders who plant MON180 to sow other crops instead, said Thierfelder. Advertising sowing will attract more attacks from environmentalists determined to destroy crops, Thierfelder said. About 160 districts in Germany have declared themselves GM-free zones, including Seehofer's constituency.

Spain and Portugal are Monsanto's biggest customers in the 27-state European Union with about 100,000 hectares under MON180. The U.S. had 55 million hectares of GM maize in 2006. So far, farmers in Germany have reported plans to plant 3,330 hectares of MON180 this year, Thierfelder said.

To contact the reporters on this story: Brian Parkin in Berlin at bparkin@bloomberg.net; Thomas Bauer in Berlin at tbauer@bloomberg.net.

Last Updated: January 25, 2008 09:52 EST